Elon Musk Says Tesla Can Lower Car Prices, But This Needs To Happen First

Zinger Key Points
  • The U.S. has seen a higher-than-expected inflation rate for the month of June.
  • Tesla increased prices for some of its models by as much as $6,000 last month.

Electric carmaker Tesla Inc TSLA has hiked its car prices multiple times in 2022. Last year, the company raised its prices nearly every month with industry shortages and supply chain issues. Last month, Tesla increased its car prices by up to $6000.   

Contrary to the company is pushing, Tesla CEO Elon Musk speaks about lowering car prices. 

In a recent tweet, Musk said that Tesla could lower its car prices, but it would depend on inflation.

Last month, ahead of the car price increase, Musk said that he had a bad feeling about the economy and would need to cut 10% of jobs at Tesla. 

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He shared his concern about the state of the U.S. economy and said he believes the nation is in a recession that could last up to 18 months. 

In March, Musk tweeted, saying Tesla and SpaceX were both “seeing significant recent inflation pressure in raw materials & logistics.”

In May, a research firm estimated that EV battery costs would spike by 22% in the next four years. 

Inflation in the U.S. has reached a 41-year-high, as the cost of goods increased more than expected in June — rising a whopping 9.1%, with gasoline and food costs remaining elevated. 
Photo: Created with an image from Dan G on Flickr

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